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Developer Orco posts a €390 mln loss in 2008

Developer Orco Property Group posted a net loss of €390.6 million ($515.2 million) for 2008 due to a drop in asset value, the firm said late on Tuesday.

Orco had originally planned to release full-year results on March 17, but it postponed the report several times as the company received court protection from creditors for six months, starting last month.

Operating in the Czech Republic, Germany, Poland, Slovakia, Hungary and Croatia, Orco has been hit by a drop in real estate prices, tightening of bank financing, and the departure of several top managers over the past several months.

Orco said it had booked a loss from investment property revaluation of €217 million, compared with a gain of 147 million a year ago. Amortization, impairments and provisions jumped to €189 million, from 17 million. In 2007, the firm posted net profit of €87.5 million. (Reuters)